After a phenomenal 2017, 2018 is the year that cryptocurrencies are starting to be taken even more seriously by multiple governments and institutions despite the non-spectacular nature of the market.
According to a press release from August 17th, the Union Bank AG from Liechtenstein is set to issue its own security token and in-house cryptocurrency backed by fiat. The bank in question has set its sights on blockchain technology for quite some time now, and aims to become a “full-service blockchain investment bank.”
The token will be called Union Bank Payment Coin (UBPC) will take on the role of a stable coin, the bank explained. In the press release, the bank’s representatives also mentioned that the digital currency would be backed up by various fiat currencies such as the Swiss franc.
Union Bank AG aims to become a blockchain investment bank
The press release quotes Mohammad Hans Dastmaltchi, the chairman of the board of directors: “Our goal is to become the world’s first blockchain investment bank and to provide tangible solutions which help drive efficiencies, reduce cost base and open up new revenue opportunities for our customers and intermediaries alike.”
“…As such, our fiat-backed Union Bank Payment Coin has the potential to disrupt the approach to international trade and international cross-border transactions,” he also added.
Interestingly, the Union Bank has also partnered with Swiss blockchain advisory Verum Capital. The partnership aims to introduce blockchain “throughout its processes and supporting technology.”
The move was possible thanks to the government’s positive stance on blockchain technology and cryptocurrencies. There’s a good chance the project will be a successful one, in which case, many financial institutions from Liechtenstein as well as the rest of Europe will most likely follow its example.